Article written by SBAM’s Advocacy team
Michigan workers and employers should be aware of several updates to the state’s unemployment insurance system taking effect this week, including increased work search requirements, expanded eligibility protections, and greater flexibility for employers participating in the Work Share program.
The changes are part of bipartisan legislation signed into law by Gov. Gretchen Whitmer and are intended to modernize Michigan’s unemployment system while better meeting the needs of today’s workforce and employers.
“It is important that Michiganders understand the changes ahead and how they affect their unemployment experience,” said UIA Director Jason Palmer. “Together, these changes aim to create a more responsive system that is better aligned with the needs of today’s workers and employers.”
Beginning the week of July 19, individuals receiving unemployment benefits must complete and report at least three work search activities each week, up from the current requirement of one. Claimants who fail to meet the requirement may lose benefits or be required to repay benefits received improperly.
Also taking effect July 17, workers who leave their jobs because of domestic violence may qualify for unemployment benefits if they meet all other eligibility requirements. The change adds domestic violence as a recognized separation reason during the application process.
For employers, one of the most significant updates is an expansion of Michigan’s Work Share Program. Starting July 19, participating employers can reduce employee hours by between 10% and 60%, compared to the previous range of 15% to 45%. The program allows businesses to avoid layoffs by reducing hours while employees receive partial unemployment benefits to offset lost wages.
Additional changes include a streamlined appeals process that allows certain unemployment cases to be combined into a single hearing before an administrative law judge, helping reduce administrative burdens for both claimants and employers.
The law also expands access to financial hardship waivers for individuals required to repay improperly received benefits. Beginning July 17, claimants may submit up to four waiver requests per year, up from one every six months.
While several of the changes affect benefit recipients directly, the expanded Work Share Program offers employers another tool to retain trained workers during temporary slowdowns, helping businesses maintain workforce stability while avoiding layoffs.
More information on the changes is available through the Michigan Unemployment Insurance Agency at Michigan.gov/UIALawChanges.
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